1. The Problem with Keeping Your SIP the Same Forever
You probably get a salary hike most years. But does your SIP amount go up too? For a lot of us, it just stays stuck at whatever we started with.
That's one of the biggest quiet misses in personal finance. We kick off a ₹5,000 or ₹10,000 SIP when we're younger, feel good about it, and then... forget to adjust it. Over time, inflation chips away at what that money can really do.
Step-Up SIP is like giving your investments the same annual boost you get at work. It puts your wealth-building on autopilot and keeps things moving forward.
Curious how much difference it makes for you? Play with our Step-Up SIP calculator —it'll show you in seconds.
2. How Step-Up SIP Actually Works
It's simple automation. When you start your SIP, you give an instruction to the mutual fund house:
"Increase my SIP amount by 10% every year."
- Year 1: ₹10,000 / month
- Year 2: ₹11,000 / month (10% hike)
- Year 3: ₹12,100 / month (10% hike)
This small increase is usually painless because it matches your annual appraisal, but the impact on your final corpus is massive.
Visualize the Difference
Don't just read the math. Use our tool to see how much extra wealth a 10% step-up creates for you.
Open Step-Up Calculator3. See the Numbers: Regular vs Step-Up SIP
Let's compare two investors over a 20-year period assuming a 12% return.
| Parameter | Standard SIP (Flat) | Step-Up SIP (10% Yearly) |
|---|---|---|
| Monthly Investment | ₹10,000 (Fixed) | Starts ₹10k, Increases 10% |
| Total Invested | ₹24 Lakhs | ₹68.7 Lakhs |
| Final Corpus | ₹99.9 Lakhs (~1 Cr) | ₹2.28 Crores (>2x) |
| Extra Wealth | - | + ₹1.28 Crores |
4. Why Stepping Up Makes Such a Big Difference
- Stays ahead of inflation: Prices go up every year—your investments should too, so your money still buys what you want later.
- Matches your real life: As your salary rises, you can save more without feeling pinched. It keeps your saving habit strong instead of letting lifestyle creep take over.
- Gets you to goals quicker: Whether it's retirement, a house, or kids' education, you'll likely hit the number years earlier.
5. Who Should Use This?
Step-Up SIP is ideal for:
- Young Professionals: Starting with a small salary but expecting good career growth. Start small, grow big.
- Late Starters: If you started investing late (e.g., in your 40s), Step-Up is the only way to catch up and build a respectable corpus.
- FIRE Aspirants: Those aiming for Early Retirement (FIRE) need aggressive corpus accumulation.
Want to see how this fits into your retirement plan? Check our Retirement Planning Calculator.